The Securing Non-profit Funding report, published in October 2024, examines how 28 leading nonprofits operating across 70 primarily low- and middle-income countries sustain their solutions at scale. It explores five funding sources: philanthropy, governments, companies, bilateral and multilateral institutions, and end users, revealing the trade-offs and lessons unique to each.
Securing funding is one of the toughest challenges nonprofit organisations face on their journey to scale. Spring Impact has set out to develop an evidence-based understanding of the funding models that enable nonprofits to achieve impact at scale, as well as how these models have evolved over time.
The research focuses on two key questions: Who is funding nonprofits to sustain their impact at scale, and how have nonprofits secured funding from different payers?
The findings offer valuable insights for nonprofits and funders seeking to scale their impact effectively.
Methodology
Spring Impact engaged with leaders from 28 nonprofits operating in more than 70 countries and spanning 10 issue areas, each making a meaningful contribution in addressing societal or environmental challenges. To understand how these organisations fund their work at scale, researchers analysed their most recent operating budgets to examine how different payer types contribute and explored how these funding models have evolved.
The shortlist was drawn from a database of 126 organisations, compiled using internal knowledge, partner and funder lists, expert referrals and Spring Impact networks. The research aimed for diversity in geography, sector and scaling pathway.
Interviews focused on their solutions, funding sources, model evolution and perspectives on different payers. Findings were validated through financial data, additional interviews and desk research.
Key insights on nonprofit funding for scale
- Shifting delivery costs to government supports financial sustainability at scale: Many successful nonprofits make their solutions financially sustainable by embedding delivery costs within partner systems, such as government programmes. This involves designing solutions that enable government partners to deliver them effectively and ensuring the surrounding ecosystem supports high-quality, impactful delivery. This approach helps to reduce overall costs and positions the solution for long-term success.
- Adoption is not the end. Nonprofits still need funding to support partners to deliver: Governments are essential partners for scaling, but they typically provide little to no funding for the ongoing support that nonprofits offer to help deliver solutions effectively. The same is true for other actors, such as nongovernmental organisations (NGOs), community-based organisations, private sector partners and educational institutions, which often require long-term guidance to deliver at scale but rarely cover the costs themselves.
- Philanthropy remains vital: Even for organisations that have achieved impact at scale, philanthropy continues to be the largest source of funding. While many funders expect nonprofits to diversify over time, most still rely on philanthropic support to sustain their impact.
- Unrestricted, long-term funding is critical: Flexible funding allows nonprofits to allocate resources where they are most needed, respond to changing circumstances, test innovative approaches and cover core costs. While not every organisation needs mostly unrestricted funding, lacking it can seriously limit their ability to achieve impact at scale.
- End-user fees rarely cover full costs: Charging fees may work for some organisations and sectors, but most cannot rely on them alone, especially when reaching those with the greatest need. Additional funding sources are almost always needed to sustain impact.
- Cost-effectiveness is key: Nonprofits must continually optimise costs and show that their solution can be delivered within a payer’s budget. Each funding source carries its own benefits and trade-offs.
Pros and cons of funding sources
Learnings for nonprofits
| 1. Pursue cost-effectiveness It is important to understand payers’ price points and ensure that solutions are delivered affordably, often requiring a low cost per outcome. |
| 2. Build evidence of impact Nonprofits should demonstrate that their solutions offer the best return on investment, typically through rigorous evidence, such as randomised controlled trials. |
| 3. Influence other doers It is essential for nonprofits to integrate their solutions within other actors, including government systems, and shape the ecosystem to support adoption. |
| 4. Test, learn and adapt There is no perfect funding model. Nonprofits should take an agile approach, continually iterating and adjusting. |
| 5. Diversify funding Nonprofits should avoid overreliance on any single funder, as all funding sources can be unpredictable and unstable. |
| 6. Never scale alone Nonprofits can benefit from focusing on ecosystem partners who can implement their solutions, reach target groups and share their mission to efficiently scale impact. |
Learnings for funders
| 1. Long-term commitments from funders are crucial Long-term funding allows nonprofits to grow, adapt and avoid funding gaps. |
| 2. Unrestricted funding is invaluable Unrestricted grants enable nonprofits to allocate resources where they are needed most, respond to challenges and invest in long-term sustainability. |
| 3. Government engagement is essential and requires additional funding Partnering with governments is critical for scaling, but nonprofits often need funding to cover delivery costs. Supporting these relationships is key to achieving sustainable impact. |
| 4. Philanthropy as a cornerstone Multiyear, unrestricted philanthropic funding enables nonprofits to innovate, respond to changing needs and cover core costs, even as they diversify their income and collaborate with other stakeholders. |
| 5. Funders must support agility and adaptability Nonprofits need flexibility to adjust funding models and strategies. Funders should support this adaptability to help organisations test, learn and refine their approaches. |
| 6. Support for systems change Nonprofits often aim to shift broader systems beyond direct service delivery. Funders should support initiatives that tackle systemic problems for long-term impact. |
Case study
Last Mile Health
Last Mile Health improves access to healthcare in remote areas of Ethiopia, Liberia, Malawi and Sierra Leone by professionalising and supporting community health workers.
How they do it
They work in close partnership with governments to integrate existing community health worker programmes into national supply chains and data systems, while standardising training and supervision. This approach embeds new methods within government structures. A core focus of their work is advocating for fair pay and the professionalisation of community health workers, who are often treated as unpaid volunteers.
By leveraging evidence and partnerships, Last Mile Health encourages governments to invest in recruitment, training, supplies, supervision and salaries. They also provide technical support to health ministries, strengthening policy and system design. Guided by a ‘learner mindset’, they remain flexible in pursuing the most impactful solutions, while maintaining autonomy by only accepting funding aligned with their mission.
Key success factors
- Demonstrating impact: Early-stage investors backed their work after seeing significant improvements in outcomes, such as higher immunisation rates and more facility-based deliveries.
- Trusted partnerships: Their strong reputation for fulfilling commitments has built lasting relationships with donors, leading to larger and more competitive funding.
- Funding diversification: A deliberate mix of funding sources, particularly flexible philanthropic capital, has helped preserve strategic independence and a long-term focus.
Find out more
- The full report, Securing Non-Profit Funding, is available at: www.springimpact.org/securing-nonprofit-funding/
- Contact: info@springimpact.org
